2024
Authors
Morim, A; Campuzano, G; Amorim, P; Mes, M; Lalla-Ruiz, E;
Publication
EXPERT SYSTEMS WITH APPLICATIONS
Abstract
Following the widespread interest of both the scientific community and companies in using autonomous vehicles to perform deliveries, we propose the 'Drone-Assisted Vehicle Routing Problem with Robot Stations' (VRPD-RS), a problem that combines two concepts studied in the autonomous vehicles literature: truck-drone tandems and robot stations. We model the VRPD-RS as a mixed-integer linear program (MILP) for two different objectives, the makespan and operational costs, and analyze the impact of adding trucks, drones, and robots to the delivery fleet. Given the computational complexity of the problem, we propose a General Variable Neighborhood Search (GVNS) metaheuristic to solve more realistic instances within reasonable computational times. Results show that, for small instances of 10 customers, where the solver obtains optimal solutions for almost all cases, the GVNS presents solutions with gaps of 0.7% to the solver for the makespan objective and gaps of 0.0% for the operational costs variant. For instances of up to 50 customers, the GVNS presents improvements of 21.5% for the makespan objective and 8.0% for the operational costs variant. Furthermore, we compare the GVNS with a Simulated Annealing (SA) metaheuristic, showing that the GVNS outperforms the SA for the whole set of instances and in more efficient computational times. Accordingly, the results highlight that including an additional drone in a truck-drone tandem increases delivery speed alongside a reduction in operational costs. Moreover, robot stations proved to be a useful delivery element as they were activated in almost every studied scenario.
2024
Authors
Peixoto, A; Martins, S; Amorim, P; Holzapfel, A;
Publication
INTERNATIONAL TRANSACTIONS IN OPERATIONAL RESEARCH
Abstract
In several online retail contexts, such as grocery retailing, customers have to be present at the moment of delivery, that is, an attended home delivery service is in place. This requirement adds new challenges to this channel, often leading to narrow profitability. From an operations perspective, this service is performed with the retailer offering multiple time slots for the customer to choose from. Retailers target a cost-efficient delivery process that also accounts for customers' preferences by properly managing the options to show to customers, that is, time slot management. This study analyzes a dynamic slotting problem, that is, choosing the best slots to show for each customer, which is close to many practical cases pursuing a customer service orientation. We study two new strategies to improve customer service while satisfying cost-efficiency goals: (i) enforcing a constraint on the minimum number or percentage of slots to show to customers and (ii) integrating multiple days when tackling this challenging problem. Our results show under which conditions these proposed strategies can lead to win-win situations for both customer service and profit.
2024
Authors
Neves Moreira, F; Amorim, P;
Publication
INTERNATIONAL JOURNAL OF PRODUCTION ECONOMICS
Abstract
Omnichannel retailers are reinventing stores to meet the growing demand of the online channel. Several retailers now use stores as supporting distribution centers to offer quicker Buy-Online-Pickup-In-Store (BOPS) and Ship-From-Store (SFS) services. They resort to in-store picking to serve online orders using existing assets. However, in-store picking operations require picker carts traveling through store aisles, competing for store space, and possibly harming the offline customer experience. To learn picking policies that acknowledge interactions between pickers and offline customers, we formalize a new problem called Dynamic In-store Picker Routing Problem (diPRP). This problem considers a picker that tries to pick online orders (seeking) while minimizing customer encounters (hiding) - preserving the offline customer experience. We model the problem as a Markov Decision Process (MDP) and solve it using a hybrid solution approach comprising mathematical programming and reinforcement learning components. Computational experiments on synthetic instances suggest that the algorithm converges to efficient policies. We apply our solution approach in the context of a large European retailer to assess the proposed policies regarding the number of orders picked and customers encountered. The learned policies are also tested in six different retail settings, demonstrating the flexibility of the proposed approach. Our work suggests that retailers should be able to scale the in-store picking of online orders without jeopardizing the experience of offline customers. The policies learned using the proposed solution approach reduced the number of customer encounters by up to 50%, compared to policies solely focused on picking orders. Thus, to pursue omnichannel strategies that adequately trade-off operational efficiency and customer experience, retailers cannot rely on actual simplistic picking strategies, such as choosing the shortest possible route.
2024
Authors
Amorim, P; Dehoratius, N; Eng-Larsson, F; Martins, S;
Publication
MANAGEMENT SCIENCE
Abstract
Retailers face increasing competitive pressure to determine how best to deliver products purchased online to the end customer. Grocery retailers often require attended home delivery where the customer must be present to receive the delivery. For attended home delivery to function, the retailer and customer must agree on a delivery time slot that works for both parties. Using online data from a grocery retailer, we observe customer preferences for three delivery service attributes associated with each time slot: speed, precision, and timing. We define speed as the expected time between the placement of an order and its delivery, precision as the duration of the offered time slot, and timing as the availability of choices across times of the day and days of the week. We show that customers not only value speed as an attribute of delivery service but that precision and timing are also key drivers of the customer's time slot selection process. We also observe substantial customer heterogeneity in the willingness of customers to pay for time slots. Customers that differ in their loyalty to the retailer, basket value, basket size, and basket composition exhibit distinct differences in their willingness to pay. We show that retailers with the capability to tailor their time slot offerings to specific customer segments have the potential to generate approximately 9% more shipping revenue than those who cannot. Our findings inform practitioners seeking to design competitive fulfillment strategies and academics customer behavior in the attended home context.
2024
Authors
Ali, ÖG; Amorim, P;
Publication
INTERNATIONAL JOURNAL OF FORECASTING
Abstract
Discrete choice models can forecast market shares and individual choice probabilities with different price and alternative set scenarios. This work introduces a method to personalize choice models involving causal variables, such as price, using rich observational data. The model provides interpretable customer- and context-specific preferences, and price sensitivity, with an estimation procedure that uses orthogonalization. We caution against the nalive use of regularization to deal with the high-dimensional observational data challenge. We experiment with the attended home delivery (AHD) slot choice problem using data from a European online retailer. Our results indicate that while the popular non-personalized multinomial logit (MNL) model does very well at the aggregate (day-slot) level, personalization provides significantly and substantially more accurate predictions at the individual-context level. But the nalive personalization approach using regularization without orthogonalization wrongly predicts that the choice probability will increase if the slot price increases, rendering it unfit for forecasting demand with pricing scenarios. The proposed method avoids this problem. Further, we introduce features based on potential consideration sets in the AHD slot choice context that increase accuracy and allow for more realistic substitution patterns than the proportional substitution implied by MNL.
2024
Authors
Vazquez Noguerol, M; Comesaña Benavides, JA; Prado Prado, JC; Amorim, P;
Publication
EUROPEAN JOURNAL OF INNOVATION MANAGEMENT
Abstract
PurposeDisruptions are appearing more frequently and having an ever greater impact on supply chains (SC), affecting the vulnerability and sustainability of organisations. Our study proposes an innovative approach to address contemporary challenges by introducing coopetition as a strategic capability. The aim of this study is to enable companies to adapt and thrive by applying a tool that measures and monitors different logistical scenarios to improve performance and antifragility.Design/methodology/approachWith the aim of jointly planning transport activities of two competing companies, we present a linear programming model that promotes synergies which enhance resource utilisation. To demonstrate the validity of the model, a case study is conducted to measure, monitor and evaluate the results obtained after collaborating on SC activities.FindingsCurrent tools to support logistics planning are not effective because they hamper information exchange, cost allocation and performance measurements. Our innovative model optimises collaborative networks (CNs) and monitors economic, environmental and social improvements. The case study shows the reduction of logistics costs (13%), carbon footprint (37%) and the improvement of social antifragility when agility and flexibility emerge.Originality/valueCNs have become an effective means of enhancing resilience, but there are no empirical contributions to demonstrate how to achieve this. We provide a real case with computational experiments that provide empirical evidence of the effectiveness of the model, which measures, optimises and evaluates SC performance in coopetitive environments. This approach is a guide to researchers and practitioners when creating simulations to reduce risks and facilitate decision-making.
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